Bitcoin (BTC) dominance falls as altcoins hang


Bitcoin dominance on the decline

The dominance of Bitcoin, that is to say the share of total capitalization of the cryptocurrencies that it represents, had already tended to decline during the year. As he gathered more than 70% of the total market cap last January, it was overtaken by altcoins at the start of the year. In April, Bitcoin’s dominance had passed the fateful 50% milestone: altcoins have since then represented more than half of the total capitalization of cryptocurrencies.

And the recent fall in prices has only accelerated the trend. Figures vary by data aggregator, but the dominance would be around 40% currently, after having fallen continuously since the end of October:

Percentage of Bitcoin dominance – Source: TradingView

According to data from CoinGecko, this percentage would even have reached 38% this morning. The capitalization of BTC still hasn’t climbed above $ 1 trillion, although the course has partially recovered from its fright:

Bitcoin BTC price

Bitcoin’s price is partially recovering from its fall – Source: TradingView, BTC / USDT

The price of BTC indeed shows this morning 48,200 dollars, with a capitalization of 914 billion dollars. The 50,000 dollar mark seems to be the new short term goal of cryptocurrency.

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Altcoins fare (a little) better

What sparked the comments during the sharp drop in the price of Bitcoin is that some altcoins seem to have partially dissociated themselves of BTC price movements. This was the case for Ethereum’s ETH price, which fell “only” by -3.9% over the week (against -15.2% for BTC currently).

It should also be noted that Solana’s SOL loses -5% over the same period, where her comrades show more double-digit drops. Special mention also for the LUNA of Terra, which has presumptuousness to grow by + 24.3% over the week, ignoring the bloodbath.

A lasting trend?

This is a trend that seems to be starting to take shape with the latest BTC price movements: altcoins are said to be less subject to the moods of the biggest cryptocurrency. This suggests that their value propositions are now more distinct in the minds of investors than they have historically been.

It is an interpretation that we find in a recent report by Messari, which explains that BTC and ETH are not viewed in the same way … But a “flippening” is not ready to happen anyway:

The probability of a “flippening” in 2022 may be 20%. […] If ETH manages to beat BTC, it won’t be because it is a superior currency, but rather because the market gives more value. to the most unique IT platform […] and its growth potential, rather than digital gold.

However, this remains notable, and it shows that the queen of cryptocurrencies has stood out from Ethereum and its flock of “killers”. We will therefore continue to observe the trend in the coming months.

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About the Author : Marine Debelloir

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Associate Editor on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to find the most delicious information to share with you.
All articles by Marine Debelloir.

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